Nearly a quarter of the amount (EUR25 million) came from the EUR400 million budget from the National Recovery and Resilience Plan (NRRP) allocated to investment funds, which will use the money for investments in small and medium-sized enterprises (SMEs) in Romania. Money also came from the European Investment Fund (EIF), the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC ). The fund has also gained the trust of local and international family offices, such as Inspire Asset Management, the financial investment vehicle controlled by Iulian Stanciu, president of eMAG and one of the most famous entrepreneurs in Romania.
Through its second fund (Fund II), Morphosis Capital aims to make between 9 and 10 investments, each with an investment ticket ranging from EUR10 to EUR15 million. For comparison, its first fund realized six investments with ticket size range between EUR5 to EUR10 million. Fund II’s strategy will primarily focus on companies in Romania, but it will also target other countries in the region, such as Bulgaria, Croatia, Czechia, Poland, Slovakia, and Slovenia. The fund will target companies with an EBITDA between EUR1 and EUR5 million, prioritizing majority stake acquisitions, either independently or alongside co-investors.
Morphosis Capital Fund II aims to support the growth of SMEs in Romania and the region, in key sectors such as healthcare, B2B services, consumer products and retail, as well as niche manufacturing.
“With double the size, Morphosis Capital Fund II equips us with the resources needed to further support entrepreneurial companies across Romania and the region. By driving both organic growth and M&A strategies, we will help companies scale rapidly, enabling their full potential, driving the long-term development of the entrepreneurial ecosystem throughout Central and Eastern Europe. The success of our first fund, which generated an IRR of over 30% through one full exit and two partial exits, sets a solid foundation for Fund II. As our first fund matures, we are confident in identifying further profitable exit opportunities that will strengthen our position as a trusted partner to both our portfolio companies and investors, while continuing our mission of identifying and partnering with innovative businesses through Fund II,” said Andrei Gemeneanu, Managing Partner at Morphosis Capital.
In selecting portfolio companies, Morphosis Capital targets businesses operating in growing markets, within fragmented industries, with scaling potential through organic growth or buy & build strategies. The fund also prioritizes companies with strong financial performance, a robust organizational culture, and prospects for mergers and acquisitions, offering exit opportunities for investors.
Morphosis Capital’s portfolio currently includes DocProcess (IT), Medima Health (healthcare), EMI (manufacturing), Cronos Med (healthcare), Stay Fit Gym (sport), Mark Twain International School (education) and Supermarket La Cocos (retail).